Talon Metals Corp. Fundamental Analysis (TSX: TLO.TO)
Talon Metals Corp. (TSX: TLO.TO) shows weak financial fundamentals with a PE ratio of 473.03, profit margin of 2.70%, and ROE of 0.90%. The company generates $0.1B in annual revenue with weak year-over-year growth of 0.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 32.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze TLO.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakTLO.TO struggles to generate sufficient returns from assets.
Valuation Score
WeakTLO.TO trades at a premium to fair value.
Growth Score
WeakTLO.TO faces weak or negative growth trends.
Financial Health Score
ExcellentTLO.TO maintains a strong and stable balance sheet.
Profitability Score
WeakTLO.TO struggles to sustain strong margins.
Key Financial Metrics
Is TLO.TO Expensive or Cheap?
P/E Ratio
TLO.TO trades at 473.03 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TLO.TO's PEG of 4.74 indicates potential overvaluation.
Price to Book
The market values Talon Metals Corp. at 2.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 33.89 times EBITDA. This signals the market has high growth expectations.
How Well Does TLO.TO Make Money?
Net Profit Margin
For every $100 in sales, Talon Metals Corp. keeps $2.70 as profit after all expenses.
Operating Margin
Core operations generate 3.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.90 in profit for every $100 of shareholder equity.
ROA
Talon Metals Corp. generates $0.48 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Talon Metals Corp. generates limited operating cash flow of $-841.09K, signaling weaker underlying cash strength.
Free Cash Flow
Talon Metals Corp. generates weak or negative free cash flow of $-33.55M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.36 in free cash annually.
FCF Yield
TLO.TO converts -7.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
473.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.83
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.009
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How TLO.TO Stacks Against Its Sector Peers
| Metric | TLO.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 473.03 | 27.26 | Worse (Expensive) |
| ROE | 0.90% | 1196.00% | Weak |
| Net Margin | 2.70% | 224.00% | Weak |
| Debt/Equity | 0.03 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 2.96 | 3.13 | Strong Liquidity |
| ROA | 0.48% | 2757.00% | Weak |
TLO.TO outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Talon Metals Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Cyclical, Commodity, Value
DecliningEPS CAGR
6.39%
Industry Style: Cyclical, Commodity, Value
GrowingFCF CAGR
56.02%
Industry Style: Cyclical, Commodity, Value
High Growth